Reinsurance to close (RITC) and technical provisions: section 107 FA2000: further help available: the ‘Lloyd's Calculator’
There is a spreadsheet (‘the Lloyd’s calculator’) in the ‘Tools’ section of the HMRC website () to help identify the proportion of the RITC premium that is treated as a ’technical provision’. There is also a guidance note: ‘Using the Lloyd’s Calculator’.
The calculator requires the user to enter
- the amount of a member’s participation in each year of account
- the amount of the syndicate’s RITC broken down into the underwriting years for which they are paid, and
- the amount of the syndicate’s claims paid in each year broken down into the underwriting years for which they are paid.